China Urges US to Protect Creditors After S&P Warning

[Ares]

China's Foreign Ministry said on Tuesday that the United States must take "responsible" measures to protect investors in its debt after Standard & Poor's threatened to lower its credit rating on the United States due to a bulging budget deficit.

"We hope the U.S. government will take responsible policies and measures to safeguard investors' interests," the ministry said in a statement.

China's foreign exchange reserves, already the world's biggest, rose by nearly $200 billion in the first quarter to $3.05 trillion. About two-thirds are estimated to be invested in dollars.

Beijing has repeatedly warned that loose U.S. monetary policy threatens the dollar, but it has continued to accumulate dollar assets at the same time, adding about $260 billion of Treasury securities last year, according to U.S. data.

http://www.cnbc.com/id/42662970

[gunDriller]

China's Foreign Ministry said on Tuesday that the United States must take "responsible" measures to protect investors in its debt after Standard & Poor's threatened to lower its credit rating on the United States due to a bulging budget deficit.

"We hope the U.S. government will take responsible policies and measures to safeguard investors' interests," the ministry said in a statement.

China's foreign exchange reserves, already the world's biggest, rose by nearly $200 billion in the first quarter to $3.05 trillion. About two-thirds are estimated to be invested in dollars.

Beijing has repeatedly warned that loose U.S. monetary policy threatens the dollar, but it has continued to accumulate dollar assets at the same time, adding about $260 billion of Treasury securities last year, according to U.S. data.

http://www.cnbc.com/id/42662970



so ...

1. 2/3 of China's $3 Trillion in foreign currency holdings are in US $. that would be $2 Trillion.
2. China knows that Jaw-boning doesn't work - not with the US gov.
3. although the US $ has not yet gone off a cliff, it is close, and China knows that.
4. China is not stupid about gold and silver - they keep all their domestic gold production. and they are advising their citizens to buy gold and silver.

so ... what happens when $2 Trillion starts chasing available reserves of gold and silver ? this is what makes estimates such as $3000 gold & $120 silver look very down-to-earth.

plus they are smart - they will be going around the planet, visiting all the countries' respective garage sales - an oil field here, 100,000 acres of farmland there - using their $ reserves wisely while those reserves still have some value.

plus waiting for the US stock market to crash so they can buy GE, etc., for pennies on the $.

at least, that's what i would do.

[Ponce]

"Protect its credit"...........we no longer even get anymore credit and can't pay even the interest in the credit that we already have.........and wait till the bonds from Japan comes back home to roost.